Strategic partners

Introduction

The concept of strategic partnerships is the working together with others, to the benefit of all concerned.

From a club perspective this gives us a far greater reach than we could have on our own and also has the benefit in that those within the strategic partnership arrangements will be looking to undertake a series of transactions with or through the club, so in a commercial world there is more incentive to make sure that all commitments are honoured and that we are not misled.

Clubs like non profit entities often have difficulty in mixing their model of putting the interest of the member first with that of commercial activities where the need to make and maximize sales is paramount. Over many years a number of the New Atlantis clubs have run in parallel to businesses owned by members of New Atlantis, and given New Atlantis trust status, so we have gained a great deal of experience in running non profit  member based services alongside commercially viable businesses. We have been able to extend this to establishing models that allow us to work alongside and with others, where we can take part, but not at any point overlook that the members interests come first.

Estate agents /realtors

Agents have local knowledge, often access to deals that have not been widely publicized, and many contacts within their community. Most are familiar with joint agency deals, and the splitting of commissions with other agents who have an interested party. In many cases Maximum Coverage, who provide the club services, acts in part like an agent as far as other agents are concerned, and undertakes the functions they would usually associate with an agent retained by a buyer.

In the UK, agents commissions are small by comparison to other countries where commission of anything up to 20% can be found. You will often find exhibition franchises or others who promote in the UK, properties abroad, most often being in Spain, and have an arrangement with the local Spanish agents to show people around and complete the transaction, while they get a share of the commission on the sale.

While within the club we have taken the reverse role as buyers as opposed to sellers, excluding agency deals can be counter productive especially where our local contacts and knowledge may not be as strong. In these cases it may make sense for the club services to in effect take on the role of an agent and by this means get local help and also redirect half of the commission on the sale back to the member or into reducing or covering costs, providing that the financial model used to advise the member, is created net of the effect of commissions received. 

Letting agents

As through the club we do not handle the letting of property for members, many members will, having used the clubs services to find properties, be looking to use letting agents at least initially. In the case of franchises, and consortium owned properties we look at what is most cost effective, and may use local agents where there is a benefit over managing the properties ourselves. From a letting agents perspective we are therefore both a potential client and introducer of clients. 

When undertaking local studies of areas, the local knowledge letting agents have, as to demand, saturation, voids, and rental rates, charges for each type of property in each part of their area is of great value. Those who share this knowledge with us, help us in providing advice to members as to the best areas to invest and are mentioned within the studies.

As we have an open membership, with no membership fee, it is not practical to negotiate a reduced fee for members with letting agents and we take no share of the agents fees. 

Builders and developers

Strategic partnerships with those involved in creating opportunities, building or improving property, can also be beneficial to members. A history of dealing with specific people may be helpful in assessing the quality of ideas and prices presented by them. Also as developers become used to working with us they will learn the considerable savings that can be achieved by strategic partnerships, with saving in marketing and commissions, plus dealing with people who state things as they are rather then using a great deal of spin and embellishment.

Maintenance people

Anyone involved with property understands the problem of getting hold of a plumber when needed, or getting a decorator in quickly to sort out a property that has just been purchased and you want to let ASAP. Similarly landscapers who can produce cost effective and easily maintainable gardens, or builders who can stick to time scales are much treasured. 

Private clubs

Within both the Property Pension Club and Holiday Property Club, we designed in the scope for people to have their own private clubs that could operate to their personal benefit, or to the benefit of any group, organization or family. This has the great benefit from our perspective that we can concentrate on making things happen, while allowing others to be involved in promotion and supporting their own members. It also means that we do not have to become concerned as to the activities or philosophies of any group, and if these are or are not compatible with our own objectives. 

Others

The point we should make is that we are not against anyone making a profit, or do we object to anyone becoming extremely wealthy through any activity. Our position is one of looking for the best value for members, and where we are looking to  arrange something for them, the service that is best according to the model we are using. This may mean that a higher price is beneficial if the time scale is shorter and guaranteed, or in another case the best price is paramount as time scale is not a major issue. 

How we view success

Success is achieving what we set out to, on the time scale and price we agreed.

If you take on a commitment for us, we expect you to fully complete it, if we are let down we will not accept excuses, whatever they might be and never use that person again or recommend anyone else to. 

If deadlines have to be moved then it is essential that we are kept informed and in most cases we will be looking for you to cover any loss the members have encountered by your failure to perform, this will often be in the trading agreement.